"They are expensive and a pain to deal with," said one media agency's digital chief.

"Apple is in a weaker position than you'd think," said another agency's digital leader.

"Apple is still figuring out how to sell advertising," said one senior marketing group executive. "You don't just become a sell-side media company overnight. The infrastructure is missing at Apple right now."

That same executive: "Clients don't really take it that seriously yet. It goes in the experimental category, along with most of the rest of mobile advertising."

Alexandre Mars, chief executive of Phonevalley, Publicis Groupe's mobile agency: "They had some issues with the timing. The interaction with Apple was not easy.

Ouch. It doesn't matter what these people say, though, if Apple keeps making money on iAds.

However, the FT also reports Apple has considered lowering its $1 million threshold for ad campaigns just so it can sign up bigger name advertisers.